Grind the cashewnuts and capsicum in a grinder and make a paste.
Prepare white sauce from the ingredients for sauce.
Heat oil in a pan and place over medium heat.
Add the paste.
Stir for a while.
Add potatoes, half of the cheese, the rest of the ingredients and white sauce.
Pour this mixture into a well greased casserole dish.
Sprinkle remaining grated cheese.
Dot with 1/2 tablespoon butter.
Bake in a hot oven (210°C) for 20 to 25 minutes.